What are Renewable Energy Certificates (RECs)?

RECs (also called Renewable Energy Credits or Guarantees of Origin) represent the environmental attributes of renewable electricity generation, separate from the physical electricity. One REC equals 1 MWh of renewable generation. Organizations purchase RECs to claim renewable energy use even if physically receiving grid electricity. RECs enable trading of renewable attributes, support renewable project economics, and facilitate compliance with renewable portfolio standards. Verification systems track and retire RECs to prevent double-counting.